Looks like Canada’s mobile market is set for consolidation. The rumor is that TELUS is in the midst of talks to acquire Mobilicity, with the idea to get an additional spectrum, though adding more customers could also help justify the cost of acquisition. The problem, however, is that Mobilicity’s owners (or that’s managers?) may not like the deal as they’ve recently left the Canadian Wireless Telecommunications Association, accusing the industry group of being a puppet for bigger players. Moreover, even if TELUS gets Mobilicity’s spectrum, the rules prevent it from using it until early 2014.

Meanwhile, another report suggests Toronto-based Catalyst Capital Group, which owns a portion of Mobilicity’s outstanding bonds, may be interested to merge the carrier with its rival, WIND Mobile. To make things even more complicate, TELUS and Rogers may also be keen to acquire WIND. Plus, it is said that Public Mobile is looking for buyer, as well…

Yeah, it’s a real mess but we do expect it to end soon with some sort of consolidation taking place. Needless to say, bankers and lawyers will be primary beneficiaries of any deal… We’ll let you know when we have anything new to add to the story…